Interview with David M. Morse, Co-President and CEO of Location Based Technologies, Inc. (LBAS)

Wall Street Transcript

67 WALL STREET, New York - July 23, 2012 - The Wall Street Transcript has just published its Wireless Communications & Telecom Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and sector Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: 4G Infrastructure Capital Expenditures - Tower Cell Splitting - Global Wireless Spectrum Allocation - Telco Dividend Yields

Companies include: Location Based Services (LBAS), Apple (AAPL), Verizon (VZ), Sprint (S), ATT (T), and many others.

The following excerpt is from the interview with David Morse, Co-President and CEO of LBAS Inc.:

TWST: Please give us a background and an overview of the company.

Mr. Morse: Yes. Our name attests to the fact that we were very early adopters and early explorers in the location-based services environment. We were way ahead of the power curve. We conducted about 10 months of premarket research that consisted of talking with a lot of customers and with potential customer segments that we anticipated had a need for a location-based solution. We then followed up those customer requirements with a tech survey of whether or not it was feasible to get into the space that early and match those requirements.

At the time, there were a number of changes afoot. In fact, it was right at the time that the government was removing the mandatory accuracy offsets for GPS locations. We also had a number of tech companies that were starting to get their devices, their module sizes, down to a reasonable size and down to reasonable price and power-consumption levels. We felt like the time to move was right. So in late 2005, we launched the company with friends and family seed capital and started the process.

TWST: What are the products and services that you currently offer and what customers do they service?

Mr. Morse: We have both consumer and commercial applications. On the consumer side we offer a dedicated A-GPS personal locator device that is two inches in diameter, very rugged and highly accurate. The same device can be used for children, pets or dropped into your luggage while traveling. It is waterproof and very robust; we've driven over it a number of times with a fully loaded Tahoe and it still works. It's built to meet the rigors and demands of an active child, whether on their skateboard, bike or playing at the park.

The ability to "see" your children even when you are not physically there is almost "magical," is how one of our customers describes it. In many ways, our devices enhance the freedom you are able to extend to your children and that helps them to live, play and enjoy life better. We designed the device so that it is always on. Once you charge it, it starts working. It's ready to go so that when your child is on the go, you, as a parent, are able to know where your child is, from anywhere and at any time.

On the commercial side, there are a host of applications for small, feature-rich A-GPS devices supported by an easy-to-use interface with customizable capabilities like ours. We're working with the military right now to assist in their ability to track airdrops so that that troops can quickly recover their supplies and be able to tell what's on a pallet that's dropped right from their smartphones. There are airlines with thousands of shipping containers, some that cost near $100,000, that need to be tracked wherever they are around the world. Once a shipping container is offloaded and unloaded at its destination, they are often stored in a giant open area or put into a warehouse. Becoming "misplaced" or lost is not an uncommon event. Similarly, there are a host of valuable assets that need to be tracked or located so they don't become lost. Asset management and cost controls are great companions for a device and system like ours.

Other commercial segments are the mobile workforce and mobile assets. More specifically, there are lone workers who are working in remote or hazardous areas whose safety is enhanced through this remote monitoring capability or for heavy equipment that is leased or rented, and then shipped all over the country for various purposes. Some of these trucks out are very large trucks that bear additional oversight laws requiring them to go under specific speed limits or to use specific roads. In some cases, if one of these special trucks exceed those speed limits, then it increases the liability of the company in the case of an accident.

Putting your company at risk when such a law is broken is no longer necessary. Devices like ours, and many others, give you remote oversight ability. Consider it like having a virtual safety manager even if the manager isn't able to physically sit in the truck with the driver. You are still able to get an alert when a vehicle goes out of a geozone or exceeds the set speed limit. Our system will literally tell you the actual speed of the vehicle as it checks in. You, as the business owner, have the ability to route those alerts to the manager, to the safety manager or to the President of the company and then, with date, be able to respond before anything bad happens.

TWST: Where do you see the industry going?

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